In: Economics
According to Contingency Approach, under what conditions does an organization likely to prefer a mechanistic structure, or an organic structure? Please support your answer with a discussion on the features of mechanic and organic organizations.( This Lesson: Principles of Management)
According to the contigency perspective ,stable environment suggests mechanistic structures that emphasize centralization,formalization,standardization and specialization to achieve efficiency and consistency.Whereas an organic organizational structure allows for horizontal communication and is much suitable for creative businesses.This type of organizational structure is decentralized giving employees at all levels a chance in the decision making process.
Mechanic | Organic |
Individual specialization:employees work separately and specialize in one task | Joint specialization employees work together and coordinate tasks |
Simple intergrating mechanisms | Complex intergrating mechanism |
Centralization:decision making kept high as possible | Decentralization:authority to control task is delegated |
Standardization:extensive use made of rules and standard operating procedures | Mutual adjustment:unpredictable work process |
Much written communication | Much verbal communication |
Informal status in organisation based on size of empire | Informal status based on percieved brilliance |